2. A company sells a single product at a price of $20 per unit. Variable expenses are $12 per unit. The company’s contribution format income statement for the most recent month follows: Total Per Unit Sales (15,000 units) $300,000 $20 Variable expenses 180,000 12 Contribution margin 120,000 $8 Fixed expenses 100,000 Net operating income $20,000 If the company sells 16,500 units next month, what should be the company’s total contribution margin? Show your calculations. Suggested approach: Total number of units sold × Unit CM
2. A company sells a single product at a price of $20 per unit. Variable expenses are $12 per unit. The company’s contribution format income statement for the most recent month follows: Total Per Unit Sales (15,000 units) $300,000 $20 Variable expenses 180,000 12 Contribution margin 120,000 $8 Fixed expenses 100,000 Net operating income $20,000 If the company sells 16,500 units next month, what should be the company’s total contribution margin? Show your calculations. Suggested approach: Total number of units sold × Unit CM
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
2. A company sells a single product at a price of $20 per unit. Variable expenses are
$12 per unit. The company’s contribution format income statement for the most
recent month follows:
Total Per Unit
Sales (15,000 units) $300,000 $20
Variable expenses 180,000 12
Contribution margin 120,000 $8
Fixed expenses 100,000
Net operating income $20,000
If the company sells 16,500 units next month, what should be the company’s total
contribution margin? Show your calculations.
$12 per unit. The company’s contribution format income statement for the most
recent month follows:
Total Per Unit
Sales (15,000 units) $300,000 $20
Variable expenses 180,000 12
Contribution margin 120,000 $8
Fixed expenses 100,000
Net operating income $20,000
If the company sells 16,500 units next month, what should be the company’s total
contribution margin? Show your calculations.
Suggested approach: Total number of units sold × Unit CM
**Pls help me im clear soultion with accurate answers pls thank u
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